Get Make An Additional Contribution By Mail - Michigan Education ...

MESP provides the maximum allowable 529 plan tax benefits available to Michigan taxpayers. When you contribute to an MESP account, any earnings can grow federal and Michigan income tax-deferred until withdrawn.

Unique tax benefits Individual taxpayers may deduct up to $5,000 in MESP contributions each year from their Michigan adjusted gross income, and taxpayers filing jointly may deduct up to $10,000. Investment earnings are 100% free from federal and state taxes when used for qualified education expenses.

- The Michigan Education Savings Program (MESP) is Michigan's direct sold 529 savings plan.

Contributing to an existing MESP account is easy and secure with our online Ugift® platform. Gift contributions can also be made by check and mailed in. Michigan taxpayers' gifts may be eligible for the state tax deduction. Check with your tax professional.

Your MESP funds can be used at any accredited university in the country—and even some abroad. This includes public and private colleges and universities, apprenticeships, community colleges, graduate schools and professional schools. Up to $10,000 annually can be used toward K-12 tuition (per student).

Ideally, you should save at least $250 per month if you anticipate your child attending an in-state college (four years, public), $450 per month for an out-of-state public four-year college, and $550 per month for a private non-profit four-year college, from birth to college enrollment.

Individual taxpayers may deduct up to $5,000 in MESP contributions each year from their Michigan adjusted gross income, and taxpayers filing jointly may deduct up to $10,000. Investment earnings are 100% free from federal and state taxes when used for qualified education expenses.

Drawbacks of 529 savings plans If you do need to withdraw funds or use them for noneducation-related expenses, you'll incur a 10% penalty and owe taxes on any investment gains.